Rana Shoaib Essay

Rapid change in prices of fuel and gas increase the production cost, which directly effect the buying power of consumer. ? Political instability and shortage of gas affecting the organization, production capacity depends upon the availability of gas. †¢? Heavy duties on import of machinery results in low efficiency. Economical Factors: †¢? Playing role in economic development by providing hundreds of jobs. †¢? Loses a huge amount of raw material while mining due to poor economical infrastructure. †¢? Government does not pay much attention on the development of the industry , which really affects the efficiency of Tiles industry. In Pakistan demographic factors like income level of people is increasing. †¢? Construction increase due to increase in population which also results in the increase in demand of tiles in the country. †¢? Living standard is increasing due to decorative and innovative styles of tiles. Technological Factors: †¢? Master Tiles use Italian manufacturing plant for producing good quality products at affordable prices. †¢? Master Tiles use latest technological to produce more innovative products efficiently and effectively. †¢? Master Tiles is using latest means of communication to communicate with customer to keep them up to date. The PESTEL Framework Environment: †¢? To minimize to effect of harmful gases Master Tiles is using environment friendly production plant equipped with latest technology. †¢? Master Tiles claims that they do not pollute the environment during the manufacturing process of the tiles. †¢? The wastage is managed in sophisticated manner that it does not pollute the environment. Legal: †¢? Master Tiles is the first tile manufacturer in Pakistan, which submits the application to National Tariff Commission against the dumping of Chinese tiles manufacturers. †¢? It strictly follows Health and Safety Laws, they protect the health of their employees; integrate labour protection into operating structures and processes. Competitors & Market ? Sonex ? National Tiles ? Imported Brands These are the major competitors of Master Tiles in local market but they are far behind because of production capacity and product quality. No doubt tiles industry is growing because of increase in living standards, and Tile market has opportunities to attract new investments and expansion in the running business. Porter’s Five Forces Threat of New Entrants: Customer Power: The entry barriers in this industry are low, There are few manufacturers of tile in so there is always threat of new entrance. the industry, Tiles are imported here due This industry has a growing potential in to this the bargaining power of future, which makes it an customer is high. Moreover attractive industry to the cheap substitute Degree of Rivalry start business are also available Few manufacturers of tiles, So in the market. degree of Rivalry is not high. There is huge demand for tiles in the market. Supplier Power: Threats of substitutes: fast growth in the market There are a number of If the prices of raw decrease the level of degree the suppliers in the material increases or the rivalry. industry, Master Tiles tax rates increase people does not dependent on automatically will switch single supplier, so the to marble tiles or chips bargaining power of floors and threats of supplier is low. substitute will increase. SWOT Analysis Strengths: Master Tiles have state of the art production plant. It can produce more that 25000 Sq. / meter per day. They have a big distribution network all over the Pakistan. Weaknesses: Master tiles is that networking system because there whole internal communication based on networking. The maintenance and repairing of its manufacturing plant. Opportunity: The growing rate of construction, which increases the demand for tiles. Government imposed anti dumping duties on Chinese Tiles, which restrict Chinese manufacturers to export the tiles in Pakistani market with low prices. Threats: Low entry barrier in the industry. Huge amount of tiles supply from unorganized local manufacturers. This is a threat for reduction in market share of Master Tiles. Boston Consulting Group (BCG) Matrix Threshold Competences Best Quality Ceramic and Granite tiles Provide a number of Series and Sizes of tiles Capabilities for competitive Advantage Threshold Capabilities Unique Resources Tangible: State of the Art Production Plant Intangible: Innovative and Creative Worker Core Competences Texture Designs Strategic Business Units (SBU) A strategic business unit (SBU) is a part of an organization for which there is a distinct external market for goods or services that is different from another SBU. Currently Master Tiles is operating with two SBU’s on the basis of Capability based Criteria, we can identity those as distribution channels. The following diagram illustrate the concept: Distributor Retailer Customers Master Tiles Retailer Customers Strategy Clock Strategic Clock Price Based Strategy (Rout 1,2): Ceramic Tile Series Wall/Floor: Special (SP) (8*10) (8*12) is sing low price strategy because its perceived benefits are low. The Hybrid Strategy (Rout 4): Following tiles are being introduced with the hybrid strategies because these products provide some benefits with low price as compared to competitors ? Granite Floor Tile Series: SPM-110 (16*16) ? Ceramic Wall Tile Series Glossy/Matt: EBL (10*13) ?